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model with idiosyncratic labor income risk. In our model economy, even a moderate earnings testing reduces individuals …
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When markets are incomplete, social security can partially insure against idiosyncratic and aggregate risks. We incorporate both risks into an analytically tractable model with two overlapping generations and demonstrate that they interact over the life-cycle. The interactions appear even though...
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model with idiosyncratic labor income risk. In our model economy, even a moderate earnings testing reduces individuals …
Persistent link: https://www.econbiz.de/10012777462
in closed form and show that joint presence of both risks leads to over-proportional risk exposure for households. This …
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market instruments. Using intergenerational risk sharing arrangements, risks can be allocated better across the various …
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